Ontario Announces 2026 Rent Increase Guideline

The Ontario government has officially announced that the rent increase guideline for 2026 will be 2.1%. The guideline limits how much landlords can increase rent each year for most residential rental units in the province.

The rule falls under the Residential Tenancies Act and applies to many rental properties across Ontario.

For landlords and property investors, understanding how this guideline works is essential to remaining compliant with the law and avoiding disputes with tenants.

What the 2.1% Rent Increase Means

For most rent-controlled units, landlords can increase rent by up to 2.1% once every 12 months.

For example:

If a tenant currently pays $2,000 per month, a 2.1% increase would allow the landlord to increase rent to approximately $2,042 per month.

The guideline is designed to balance inflation and rising costs while protecting tenants from large rent increases.

Important Rules Landlords Must Follow

Even if the increase is within the guidelines, landlords must follow several legal requirements under the Residential Tenancies Act.

Rent Can Only Be Increased Once Every 12 Months

A landlord cannot increase rent until at least 12 months have passed since the following:

• the tenant moved into the unit, or
• The last rent increase took effect.

Landlords Must Provide Proper Notice

Landlords must give tenants at least 90 days‘ written notice before the rent increase takes effect.

The notice must be delivered using the official N1 Form.

Failing to use the correct form can make the rent increase invalid.

Some Rental Units Are Exempt

Not all rental units are subject to Ontario’s rent increase guideline.

Units that are typically exempt from rent control include:

• Rental units first occupied after November 15, 2018
• Some newly built homes or basement apartments
• Certain newly constructed rental buildings

In these cases, landlords may increase rent by more than the guideline amount.

However, landlords must still provide 90 days’ notice using the proper forms.

For details about the rental units that are exempt, you can read our guide under the following:

Why This Matters for Landlords

Rent increases are one of the most common areas where landlords accidentally violate tenancy rules.

Common mistakes include:

• Increasing rent too early
• Using the wrong notice form
• Calculating the rent increase incorrectly

These mistakes can lead to disputes at the Landlord and Tenant Board and may delay rent adjustments.

For landlords managing rental properties, staying informed about these rules helps prevent unnecessary legal issues.

Final Thoughts

The 2026 Ontario rent increase guideline of 2.1% provides a clear limit for landlords raising rent in rent-controlled units.

Following the proper procedures under the Residential Tenancies Act is essential to ensure rent increases are valid and enforceable.

For property owners managing multiple rental units, working with an experienced property management team can help ensure rent increases, notices, and tenant communications are handled correctly and in compliance with Ontario law.

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